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Mila [183]
3 years ago
11

he following information pertains to Lightning Inc., at the end of December: Credit Sales $ 20,000 Accounts Payable 10,000 Accou

nts Receivable 10,400 Allowance for Uncollectible Accounts 400 credit Cash Sales 20,000 Lightning uses the aging method and estimates it will not collect 7% of accounts receivable not yet due, 15% of receivables up to 30 days past due, and 49% of receivables greater than 30 days past due. The accounts receivable balance of $10,400 consists of $7,000 not yet due, $1,700 up to 30 days past due, and $1,700 greater than 30 days past due. What is the appropriate amount of Bad Debt Expense?
Business
1 answer:
agasfer [191]3 years ago
7 0

Answer:

What is the appropriate amount of Bad Debt Expense?

Bad debt expense $ 1,178  

Allowance for Uncollectible Accounts  $ 1,178

Explanation:

The total amount of Allowance for Uncollectible Accounts is a credit of $0,400

  • Initial Balance  

Accounts Receivable $ 10,400  

Allowance for Uncollectible Accounts  $ 0,400

  • The aging method indicates that the total amount must be :

            Acc. Rec    Allow.  

7%    $ 7,000     $ 0,490 Not yet due

15%   $ 1,700     $ 0,255 1-30 days

49%  $ 1,700     $ 0,833 more than 30 days

        $ 10,400 $ 1,578  

  • It's necessary to entry the next journal entry to meet the amount indicated by the aging method.

Bad debt expense $ 1,178  

Allowance for Uncollectible Accounts  $ 1,178

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ECONOMICS, PLEASE HELP.
Nina [5.8K]

Equilibrium is the point where supply meets demand. Look at the table and see where those two columns are the same.

For B. look at the chart and see at 1,50 rent (the first column) the demand is greater than supply or not. If demand is less than supply, there is a surplus. If demand is higher, there is a shortage.

This applies to question C as well. Look at the first column, find the rent, and see if there is more supply or more demand.


3 0
3 years ago
The expected rates of return on portfolios A and B are 11% and 14%, respectively. The beta of A is 0.8 and the beta of B is 1.5.
Zigmanuir [339]

Answer:

Portfolio B has a higher return but more volatile stocks. However it depends on how the individual can tolerate risks.

Explanation:

Expected return= free return + Beta (Expected rate of return – risk free rate)

Portfolio A

6%+ +.8*6%

= 6%+4.8%= 10.8%

Portfolio B

6%+1.5(6%)

6%+9%= 15%

It depends on different factors. Portfolio B has a higher return but more volatile stocks. However it depends on how the individual can tolerate risks.

4 0
4 years ago
Financial assets may include:__________ a. capital assets that can be sold. b. cash, investments, and receivables, inventories,
mojhsa [17]

Answer:

b. <u>cash, investments, and receivables, inventories, prepayments</u>

Explanation:

Financial assets refer to liquid assets which derive their value from ownership rights and claims. For example, bonds, mutual funds, etc are financial assets.

In the given case, cash, investments, receivables, inventories, prepayments (prepaid expense) etc are liquid assets and current assets which can be readily converted to cash. Investments could be both short term and long term.

Investments in treasury bonds are highly liquid.

Capital assets are usually those assets with maturity period of more than one year and unlike current assets are not intended for sale.

8 0
3 years ago
A truck acquired at a cost of $69,000 has an estimated residual value of $12,000, has an estimated useful life of 300,000 miles,
Anuta_ua [19.1K]

Answer:

A. $57,000

B. Depreciation rate per mile is $0.19

C. Depreciation is $14,630

Explanation:

a. cost of the truck less the residual value.

Cost of the truck        $69,000

Less: Residual value  <u>$12,000</u>

                                   $57,000

b. Depreciation rate per mile is computed by dividing cost of the truck less the residual value over the estimated useful life.

$57,000 / 300,000 miles = $0.19

c. Units-of-activity depreciation for the year is computed by multiplying miles driven for the year by depreciation rate per mile.

77,000 miles x $0.19 = $14,630

6 0
4 years ago
Boyd's Bicycle Sales and Repairs Co. offers a 6-month warranty on all new bicycle purchases. Based on history, Boyd determines t
guapka [62]

Answer:

Boyd will record Warranty Expense in the amount of $400 for the month.

Explanation:

Warraty expense is an obligation on the business because business idmliable to accept the claims of warranty. A estimated percentage of warranty expense is charges as an expense in each period.

Sales = $20,000

Warranty repair = 2% of Sales

Warranty Expnese = Sales x Warranty repairs percentage

Warranty Expnese = $20,000 x 2%

Warranty Expnese = $400

4 0
3 years ago
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